Dimensions of Brand Portfolio Strategies

Conceptual Background of Brand Portfolio Strategies

David Aaker suggested that development of a brand portfolio strategies involve six dimensions And these are

Conceptual Background of Brand Portfolio Strategies

1. 2. 3. 4.

5.
6.

Brand Portfolio Composition Product Defining Roles Portfolio Defining Roles Brand Scope Portfolio Structure Portfolio Graphics

Conceptual Background of Brand Portfolio Strategies

1. Brand Portfolio Composition

Main issue is should more brands to be added or deleted.

This dimension is about deciding number of brands company should hold

Conceptual Background of Brand Portfolio Strategies

2. Product Defining Role Microsoft Money Microsoft Window Microsoft Advertising

Each of the above is in the role of a Sub brand and MICROSOFT is in the role of a Master Brand

Conceptual Background of Brand Portfolio Strategies

This dimension define the individual external role of a brand in the portfolio. A brand in the portfolio can be in the:

Role Role Role Role Role

of Master Brand of Endorser Brand of Sub Brand as a Descriptor of Driver

Conceptual Background of Brand Portfolio Strategies

Role of Master Brand To act as a point of reference Indicator of past association

GE is in the role of a master brand in

GE-appliances & GE-Healthcare

Conceptual Background of Brand Portfolio Strategies

Role of Endorser Brand

The brand that serve to give credibility to the offerings Endorser brand represent the Organisation rather than a product brand. Nestle-Cerelac, Nestle-Milo, Dabur Vatika, Godrej- Fair glow

Conceptual Background of Brand Portfolio Strategies

Role of Sub- Brand To modify the association of a brand. To extend the master brand meaningful new segment. To create a new brand that significantly different from brand

master into a will be master

Conceptual Background of Brand Portfolio Strategies

Role as a Descriptor A brand that describe what is offered. The characteristic explained by the descriptor can not be owned by the company. GE-Appliances: Appliances is a descriptor & GE-Appliances define a distinct product category

Conceptual Background of Brand Portfolio Strategies

Saffola Cholesterol Management Atta Johnson& Johnson baby oil All Out Mosquito Repellant

Conceptual Background of Brand Portfolio Strategies

Driver Role

It reflect the degree to which a brand drives the purchase decision.

Toyota Corolla, Toyota is drive the purchase

Note that a master brand can play the role of Endorser & driver simultaneously.

Thus this dimension (Product Defining Role) represent the external consumer perspective

Conceptual Background of Brand Portfolio Strategies

3. Portfolio Roles Brands are not silo & SBU are not island This dimension represent internal managerial perspective on brand portfolio.

Conceptual Background of Brand Portfolio Strategies

Each brand play a specific role from firm's point of view & it could be:

Strategic Brand Silver Bullet Brand Flanker Brand Cash Cow Brand

Conceptual Background of Brand Portfolio Strategies

Strategic Brand A Star brand leading the market in its segment Three category of Strategic Brand: Current Power Brand Future Power Brand Linchpin Brand

Conceptual Background of Brand Portfolio Strategies

Silver Bullet Brand Positively influence the image of other brands Ex.-HP-Laser jet, IBMs Think pad Flanker Brand Create strong point of parity, provide insulation & neutralize the competitors position Ex. Crystal Clear & Tab Clear Cash Cow Brand Does not require much investment, loyal consumer base, strong market position

Ex. Microsoft office,

Conceptual Background of Brand Portfolio Strategies

4. Brand Scope This dimension reflect the span of a brand in a category or market Scope depends upon the dynamics of market. GM decided not to use GM with each of its car brand earlier they used to add GM with each brand

Conceptual Background of Brand Portfolio Strategies

5. Brand Portfolio Structure

Brand Grouping
HP-Jet series: Laser jet, Inkjet & scan jet Grouping criteria: Common technology

Brand Hierarchical tree: Like family tree Toyota Toyota cars Toyota Trucks Lexus

Toyota SUV

Corolla, Camry, Avalon, Avanza, ECHO, Matrix, Celica

Conceptual Background of Brand Portfolio Strategies

6. Portfolio Graphics These are the pattern of Brand Visual Representations across all brands.
Logo Packaging

Layout

of Print Advt. Taglines

Conceptual Background of Brand Portfolio Strategies

Aaker define 5 objectives that can be achieved by working on these dimensions: 1. SYNERGY 2. LEVERAE 3. RELEVANCE 4. STRONG BRAND 5. CLARITY

Brand Relationship Spectrum

Brand Relationship Spectrum

David Aaker proposed a continiuum of possible types of updated brand architecture & this continiuum is known as brand relationship spectrum.

Brand Relationship Spectrum

Further these four strategic option offer a nine sub-strategic alternates.

Brand Relationship Spectrum

Brand Relationship Spectrum

The position on the spectrum reflects the degree to which brands are separated in strategy execution & ultimately, in the customer's mind.

Brand Relationship Spectrum

1. A house of Brands
It involves: An independent set of stand alone brands Each maximizing the impact on a niche market Focus on positioning on functional benefits. Example: P&G : having many major brands with little or no link to P&G: Value based proposition.

Brand Relationship Spectrum

1. A house of Brands
a)Un-connected
Mountain-dew: PEPSI Thums-Up : COCA-COLA

b) Shadow endorser
Mickey-Mouse: Disney

Brand Relationship Spectrum

Positive points: Avoiding a brand association that would be incompatible with an offering Example: Volkswagen never claim its association with Porsche & Audi otherwise it would affect the brand image of both of these brands

Brand Relationship Spectrum

Negative points
1.Economies of scale and synergies (that came from leveraging a brand across multiple businesses) is sacrificed 2.Those brands which can not stand investments themselves risk stagnation and decline

Brand Relationship Spectrum

2.Endorsed brands
Endorsed brands are independent brands but they are endorsed by another brand, usually an organizational brand.

It provides credibility and substance to the offering and usually plays a minor driver role
Example of Cadbury, Nestle, etc

Brand Relationship Spectrum

2.Endorsed Brands
a) Token brand endorser :

Usually a master brand involved in several product-market context, which is substantially less prominent than the endorsed brand.

It can be a logo, like Nestle written on Kit-kat bar & all Maggi products get token of Nestle

Brand Relationship Spectrum

2.Endorsed Brands
b) Linked name
Name with common elements creates a family of brands with an implied or implicit endorser Example: Nescafe, Nestea, Nesquick here Nes- link to Nesle.

Brand Relationship Spectrum

2.Endorsed Brands
c) Strong Endorser
Adding Master Brand directly to establish a visible brand relationship with the new offering. Example: Godrej, Dabur & Cadbury use strong endorser relationship

Brand Relationship Spectrum

Sub brands
Sub brands are brands connected to a master or a parent brand and augment or modify the associations of that master brand. One role of sub brand s to extend a master brand into a meaningful new segment.

Brand Relationship Spectrum

Sub Brand
a) The sub brand as a co-driver

When both master brand and sub brand have major driver roles. Example : Gillette-Mach3: Gillette is a master brand and Mach3 is a sub brand acting as a codriver
b) Master Brand as driver Sony-Bravia: Sony is the master brand in the role of a driver and Bravia is a sub-brand only.

Brand Relationship Spectrum

A branded house
In a branded house, a master brand moves from being a primary driver to a dominant driver role across a multiple offerings. The sub brand goes from having a modest driver role to being a descriptor with little or no driver role. This option this puts a lot of eggs in a single basket Example: Virgin-Airline, Radio, Jeans, Music, ect. Harvard Uni., Harvard College, Harvard Medical College